📌 At a Glance
Aptus Value Housing has scaled profit 20x in 8 years, riding the underserved semi-urban mortgage boom. With FY25 profit at ₹751 Cr and a 5-year PAT CAGR of 29%, this housing finance ninja boasts an OPM of 85%, near-zero NPAs, and RoE of 19%. But with promoter stake falling 9% and rising FII exits, is this financial fairy tale about to hit a rate-reset reality check?
1️⃣ About the Company
Born in 2009 and thriving in Tier 2, 3 and 4 India, Aptus is no HDFC. It’s desi lending done right:
- 🏠 Focus: Self-employed, first-time home buyers
- 🌍 Geography: South India, esp. TN, AP, Telangana
- 💸 Ticket size: Sub-₹25 lakh
- 🔒 Collateral: 100% secured, self-occupied property
- 💯 NPAs: Consistently <1%
This isn’t your cousin’s startup — it’s a lean, high-yield rural mortgage machine.
2️⃣ Product Mix Breakdown
| Product | Description | Share |
|---|---|---|
| Home Loans | Build/buy/renovate residential homes | 56% |
| Business Loans | Working capital secured against home | 34% |
| Quasi Home Loans | Refinance or partial home purchase up to ₹25 lakh | 10% |
| Insurance Add-ons | Credit shield & property coverage | – |
High-margin, low-ticket lending to credit-invisible Indians. That’s the USP.
3️⃣ Financial Performance (FY21–FY25)
Revenue (₹ Cr)
| FY | Revenue |
|---|---|
| 2021 | ₹640 |
| 2022 | ₹815 |
| 2023 | ₹1,093 |
| 2024 | ₹1,365 |
| 2025 | ₹1,750 |
5-Year CAGR: 📈 28%
Healthy topline momentum with zero over-reliance on interest rate arbitrage.
Net Profit (₹ Cr)
| FY | Net Profit |
|---|---|
| 2021 | ₹267 |
| 2022 | ₹370 |
| 2023 | ₹503 |
| 2024 | ₹612 |
| 2025 | ₹751 |
5-Year PAT CAGR: 🚀 29%
Lenders wish they had these NPAs and yields.
4️⃣ Margins & Return Metrics
| Metric | FY25 |
|---|---|
| OPM (%) | 85% |
| NIM (%) | ~9% |
| ROCE (%) | 15% |
| ROE (%) | 18.6% |
| EPS (₹) | 15.03 |
| Dividend Yield | 1.41% |
| P/E | 21.3x |
| P/B | 3.7x |
This is Bajaj Finance-style return metrics — without the P/E insanity.
5️⃣ Balance Sheet Trends
| Metric | FY21 | FY25 |
|---|---|---|
| Net Worth | ₹1,980 Cr | ₹4,317 Cr |
| Borrowings | ₹2,515 Cr | ₹6,873 Cr |
| Total AUM | ₹3,600 Cr | ₹10,500 Cr (est) |
| GNPA | 0.68% | 0.68% |
| NNPA | 0.49% | 0.52% |
Aptus scaled 3x with no NPA drama. Almost suspiciously clean.
6️⃣ Cash Flow Health
- 🛠️ Operating Cash Flow: Consistently negative (₹-1,405 Cr in FY25) — classic in NBFCs due to loan disbursements.
- 💰 Financing Cash Flow: Funded via steady debt and equity — not dilution-heavy.
- 🧯 Investing Cash Flow: Minimal. Asset-light. They lend, not build.
7️⃣ Shareholding Drama
| Category | FY22 | FY25 | Change |
|---|---|---|---|
| Promoters | 62.3% | 52.9% | 🔻 -9.4% |
| FIIs | 11.5% | 27.7% | 🔺 Massive buying |
| DIIs | 2.6% | 9.9% | 🔺 Added quietly |
| Public | 22.7% | 9.4% | 🔻 Retail ran away |
WestBridge cut stake from 30% to 16%. But FIIs stepped in, so the music hasn’t stopped. Yet.
8️⃣ Valuation Check: Fair or Fantasy?
| Metric | Value |
|---|---|
| CMP | ₹320 |
| EPS (FY25) | ₹15.03 |
| P/E | 21.3x |
| Book Value | ₹86.4 |
🎯 Fair Value Range
- FY26E PAT: ₹900 Cr
- P/E Band: 18x–24x
- Market Cap Range: ₹16,200–₹21,600 Cr
- Fair Value/Share: ₹324–₹432
🔍 CMP is near the lower end = room for re-rating if credit cycle stays benign.
9️⃣ Strategic Tailwinds
- 📈 Housing for All + PMAY = secular demand
- 🧾 Formalisation of India = credit visibility
- 🏠 Affordable home ownership = long-duration, sticky assets
- 🧑💻 Tech-led underwriting → scalable ops without NPAs
🔟 Risks & WTF Alerts
- ❌ Promoter stake drop = early sign of plateauing?
- ❌ Still regionally concentrated (mostly South India)
- ❌ No asset diversification (100% mortgage backed = no room to pivot in slowdown)
- ❌ Cash flow negative = refinancing needs will rise
1️⃣1️⃣ EduInvesting Verdict
Aptus is that rare NBFC which scaled fast, stayed clean, and didn’t blow itself up in the process:
✅ High RoE + low NPAs
✅ Rural + retail borrower = sticky clients
✅ Valuation not absurd
But…
❌ Promoters cashing out
❌ FII flows can reverse fast
❌ Any interest rate spike = margin squeeze incoming
1️⃣2️⃣ TL;DR
Aptus is like the Marico of Housing Finance: consistent, clean, and criminally underrated. It won’t make you rich overnight — but it won’t bankrupt you either.
📊 For long-term investors? It’s “middle-class compounding.”
✍️ Written by Prashant | 📅 June 14, 2025
Tags: Aptus Value Housing, Housing Finance India, Affordable Lending, Rural Mortgage, NBFC Recap, EduInvesting, FY25 Results, Home Loan Stocks
